Commentary

78.3 Drafting partnership agreement clauses on the liability of partners leaving the partnership

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

78.3 Drafting partnership agreement clauses on the liability of partners leaving the partnership

| Commentary

78.3 Drafting partnership agreement clauses on the liability of partners leaving the partnership

When a partner retires from the partnership and his partnership share is bought out, usually by the remaining partners, the debts of the partnership will usually be taken into account in valuing the outgoing partner’s share. It would thus be unfair for him to bear the cost of paying out to a creditor for an unpaid debt. As a result, it is usual for the remaining partners to agree to indemnify an outgoing partner if he is called upon to pay any of those debts or any

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